Bryan and Bradford Manning created "Two Blind Brothers" to raise awareness for Macular Degeneration. Their company donates 100% of profits raised to research for a cure.
Bryan and Bradford Manning created "Two Blind Brothers" to raise awareness for Macular Degeneration. Their company donates 100% of profits raised to research for a cure.
One San Francisco accountant finishes every client conversation with a discussion about what a Biden administration could mean for portfolios.
As U.S. equity markets trade near all-time highs, coming back from their March lows, several sectors have been left behind, notably banking and energy. I believe that oil stocks are poised for a rally in the coming quarters. Last month, Fitch Ratings forecast that global GDP will fall by 4.4% in FY 2020, which implied a “modest upward revision from the 4.6% decline expected in the June.” Deutsche Bank also believes that the global GDP will “return to pre-virus levels by mid-2021.” In another forecast, the Organisation for Economic Co-operation and Development expects 5% GDP growth in the coming year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The point I am trying to make here is that the worst is possibly over for the global economy. It also implies that demand for oil will increase in the coming quarters. Crude oil prices have also stabilized, as evidenced by recent price action in commodity-based exchange-traded fund United States Oil Fund, LP (NYSEARCA:USO), and is likely to trend higher with demand growth. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Considering this macro outlook, it’s a good time a consider exposure to some fundamentally strong oil stocks, specifically four oil stocks with a healthy dividend pay-out. Even if the stock price is sideways, investors can benefit from dividend cash inflow. Let’s take a deeper look into the following stocks. CNOOC Limited (NYSE:CEO) Chevron Corporation (NYSE:CVX) Equinor (NYSE:EQNR) Marathon Oil (NYSE:MRO) 4 Oil Stocks to Buy as the Price of Crude Stabilizes: CNOOC Limited (CEO) Source: Shutterstock I like CEO stock for two primary reasons. CNOOC currently pays an annual dividend of $8.37 and at current levels, has an attractive yield of 8.9%. Further, the stock trades at a price-to-earnings-ratio of just 8.3. Therefore, in addition to dividends, the stock is likely to trend higher in the coming quarters as oil prices recover. Amidst a downturn in the industry, another positive fundamental factor is that CNOOC has a gearing ratio of 25%. With low leverage, the company has ample financial flexibility. Since the company has an annual dividend pay-out of $8.37, it’s also important to talk about the sustainability of dividends. I want to mention the fact that for the first half of FY2020, the company reported free cash flow of 6.4 billion CNY ($957.4 million). Even in the most challenging times, the Chinese oil company has managed to deliver positive FCF. I expect FCF to increase in the coming years. Dividends are therefore safe. Given the strong fundamentals, CNOOC is also on track for a capital expenditure of 80 billion yuan (mid-range of guidance) for the current year. Investments are likely to be higher for the coming year. This will translate into production growth and cash flow upside. CEO stock has declined by 38% in the last 12 months, pretty much in lockstep with oil’s gyrations. I believe that the worst is over for the sector and for the stock. Exposure can be considered at current levels of $93.70. Chevron Corporation (CVX) Source: tishomir / Shutterstock.com Chevron is another oil stock that has strong fundamentals, attractive valuations and an attractive dividend yield. CVX stock has also declined by 38% in the last year and stock upside is likely in addition to dividends. Currently, the stock pays an annual dividend of $5.16, which translates into a dividend yield of 7.28%. Chevron also has a strong balance sheet with a net debt ratio of 17%. In addition, the company has $30 billion in cash and equivalents. The liquidity buffer should help the company to ramp-up investments once oil trends higher and sustains at higher levels. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes The company’s Permian asset is likely to deliver production growth and strong cash flows in the coming years. Even for FY2020, the company expects positive FCF from Permian assets. Therefore, once oil trends higher, the returns from Permian assets will be attractive. With strong fundamentals, quality assets and robust dividends, I expect CVX stock to be a value creator in the coming years. Equinor (EQNR) Source: II.studio / Shutterstock.com I believe that Norway’s Equinor is among the top oil stocks. In the last one year, EQNR stock has declined by 20.8%, outperforming CVX stock and CEO stock and even ETF USO. The stock also has a healthy 2.55% dividend yield. In terms of growth, I believe that the Johan Sverdrup asset is likely to be a game changer for the company. The asset is the third-largest in the Norwegian continental shelf with expected resources of 2.7 billion barrels of oil equivalent. Once phase two production commences in FY2022, daily production from the asset will be 690,000 BOE/day. The company has a 42.6% stake in the asset. The asset will therefore deliver production growth and cash flow upside in the coming years. FCF is likely to be robust considering the point that the company expects full field break-even as $20 per barrel. Of course, Johan is not the only asset. The company has 6 billion barrels of proved oil and gas reserves. With a robust credit rating, the company has financial flexibility for growth. Overall, EQNR stock is worth considering at current levels. In the next 12-24 months, the company can deliver robust returns through stock upside and dividends. Marathon Oil (MRO) Source: IgorGolovniov / Shutterstock.com Among the relatively smaller names in the industry, I like Marathon Oil. MRO stock has slumped by 63% in the last year, but has been sideways for the past six months. I believe that the worst is over and upside is likely in the coming quarters. It’s worth noting that the company recently reinstated dividends with a quarterly pay-out of 3 cents per share. An annual dividend of 12 cents implies a yield of 2.89%. From a fundamental perspective, Marathon reported total liquidity of $3.5 billion as of Q2 2020. In addition, the balance sheet remains strong with an investment grade credit rating. Low break-even assets are another reason to be bullish on the company. In the second half of the year, the company expects positive FCF even if WTI oil is around $30 per barrel. For the next year, free cash flow break-even is expected at $35 per barrel. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes WTI oil currently trades at $40 per barrel and with likelihood of oil trending higher, the company’s dividends are safe. In addition, as FCF swells, fundamentals will further improve. Overall, MRO stock can be a potential doubler in the next 12-24 months. On the date of publication, Faisal Humayun did not have (either directly or indirectly) any positions in any of the securities mentioned in this article. Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector. As of this writing, Faisal Humayun did not hold a position in any of the aforementioned securities. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post 4 Oil Stocks To Buy as the Price of Crude Stabilizes appeared first on InvestorPlace.
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Occidental Petroleum (NYSE:OXY) stock is in freefall. A year ago, shares traded for as much as $50. After the March crash, OXY stock enjoyed a considerable bounce back up to the $25 level. Since then, there’s been hardly any signs of life. Shares have lost the majority of their remaining value and now trade for less than $10 a pop. Source: Pavel Kapysh / Shutterstock.com With oil firming up a bit recently, it appeared that Occidental might finally be able to turn the corner. In September, Occidental stock rallied for a moment. However, management quickly snuffed that optimism out with another shockingly bad asset sale, as it sold off one of its best oil fields to private equity for an incredibly low price. Given this unexpected and highly unfortunate development, any enthusiasm for OXY stock has disappeared in the short-term. What had been trend lines in sync, specifically the United States Oil Fund, LP (NYSEARCA:USO), shifted around Oct. 14. Oil started a slow ascent while OXY stock went the other way.InvestorPlace - Stock Market News, Stock Advice & Trading Tips That day, CEO Vicki Hollub told an industry conference that “America’s oil production will never again reach the record 13 million barrels a day set earlier this year, just before the pandemic devastated global demand,” Bloomberg reported. As they say, Occidental is burning the furniture to stay warm. And until that stops, OXY stock could keep dropping even lower. OXY Stock Investors Hit With Another Blow Throughout 2020, I’ve urged readers to avoid OXY stock. The company’s problems are numerous and its management team fails to inspire any confidence that they can fix the mess that it’s in. There are much better quality energy companies out there to buy for a sustained recovery in oil and gas. However, in September, I gave Occidental a chance. With shares down to $10, I argued that they finally looked cheap enough to be worth the risk. Shares initially popped nicely and it looked like OXY stock’s long-running nightmare was ending. But then, CEO Hollub shocked shareholders with another inexplicable decision. Earlier this month, Occidental announced that it is selling off its Colombian assets for just $700 million. Occidental had been involved in Colombia since the 1980s and has been a key partner with state oil company Ecopetrol (NYSE:EC) for ages. Colombia’s oil assets are highly attractive long-life assets with costs far below what Occidental sees on its U.S.-produced oil. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes As a result, according to Credit Suisse estimates, these Colombian fields were generating $250 million a year in cash flow for Occidental, even at current low oil prices. Think about that. Occidental dumped one of its best assets for less than three times their trough cash flow. Given the overall valuation of OXY stock (far higher than 3x cash flow) this actually made the remaining Occidental company less attractive as an asset. Crippling Debtload Forces Brutal Decisions From the regrettable Anadarko merger on, Occidental’s CEO has proven to be a poor decision-maker. The decision to give away Colombia’s crown jewels to private equity at a knockdown price is another such error. Still, given Occidental’s massive debtload, there admittedly are not a lot of good choices here. Leadership promised at least $2 billion in asset sales in 2020 to help make a dent in the company’s liabilities. Since Occidental’s higher-cost Permian assets aren’t meaningfully profitable or cash flow positive at the moment, the assets that can be easily sold are the best ones, such as the Colombian production. Unfortunately, Occidental will be left with increasingly high-cost, marginal production as it sells off Colombia, Wyoming, and other basins in the current liquidation spree. This means that the upside for OXY stock is fading by the month. Oil will eventually recover, but what will Occidental have left by the time the slump is over? OXY Stock Verdict Occidental’s decision to abandon Colombia and receive only pocket change in return is a devastating development. Every time you think Occidental might finally have reached rock bottom, it finds some way to dig even deeper. It’s especially disappointing because in September, it seemed like OXY stock might finally be ready to make a comeback. It had already sold off enough assets that its financial situation appeared alright for the foreseeable future. Perhaps management could get back to improving efficiency on its existing operations. But no, by dumping its decades-long position in Colombia, Occidental signaled to the market that there’s no end in sight to the company’s downward spiral. If you think oil is going back to $60 a barrel in the near future, you might be able to justify owning OXY stock here for its higher leverage to the price of oil. Otherwise, stay far away. The most recent asset sale made it clear that Occidental’s management team still hasn’t learned from its previous mistakes. On the date of publication, Ian Bezek did not have (either directly or indirectly) any positions in the securities mentioned in this article. Ian Bezek has written more than 1,000 articles for InvestorPlace.com and Seeking Alpha. He also worked as a Junior Analyst for Kerrisdale Capital, a $300 million New York City-based hedge fund. You can reach him on Twitter at @irbezek. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Occidental Petroleum Stock Investors See Things Go From Bad to Worse appeared first on InvestorPlace.
: The stock market rally could go either way, along with leaders like Microsoft and Tesla. It's peak earnings week as Election Day looms.
The mammoth dual listing for Chinese fintech giant Ant Group will be the world's biggest, according to a pricing determined on Friday night, Alibaba founder Jack Ma said on Saturday. "It's the first time that the pricing of such a big listing - the largest in human history - has been determined outside New York City" he told the Bund Summit in the eastern financial hub of Shanghai. Backed by Chinese e-commerce giant Alibaba, Ant plans to list simultaneously in Hong Kong and on Shanghai's STAR Market in the coming weeks.
Former Vice President Biden has a detailed proposal that involves raising taxes on people with taxable income of more than $400,000—essentially targeting the top 1%. President Trump wants to keep the tax cuts that went into effect in 2018, which largely benefited top earners.
During Thursday's debate, President Trump said he prepaid his taxes. It sparked curiosity about when it's possible to pay the IRS upfront.
In the last month, Workhorse Group (NASDAQ:WKHS) had trouble breaking out to new highs. Markets are waiting for the company to finalize a deal with US Postal Service by the end of the year. If it happens, it may win more customers for its electric delivery vehicles. WKHS stock is a high risk, high reward investment. Source: Photo from WorkHorse.com The electric vehicle sector is still very hot. Tesla (NASDAQ:TSLA) led it higher and increased investor interest after its battery day. So, what will it take for Workhorse to keep rising? Workhorse needs to win a lucrative contract to build mail trucks for the USPS. If it happens, the deal would bring the company up to $6.3 billion in revenue. Conversely, short-sellers are betting that the deal will not pan out.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The bearish bet on Workhorse stock is a massive 23.76%. So, if the company comes up empty-handed, it will not generate the expected revenue. That would put plenty of selling pressure next. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes Presently, Workhorse is benefiting from strong investor interest in the EV sector. Tesla is worth over $400 billion in market capitalization while Nio (NYSE:NIO) is up around 20 times from its 52-week low. A similar return on Workhorse is already underway but may potentially reward shareholders more. WKHS Stock and the Future of Delivery Workhorse has two-step van models: the C650 and C1000. The vehicles are 100% electric that is powered by a modular battery pack system. When the vehicle has two battery packs, it will give 35-kilowatt hours. A four-pack configuration will provide 70 kWh. When WKHS gets the USPS contract later this year, it will validate the year-long speculation in shares. Getting $6 billion in revenue would value the stock at around 0.33 times sales, assuming a market capitalization of around $2 billion. Investors will need to exercise patience as they wait for the necessary contract approvals. Governments typically take their time for signing off on contracts, regardless of the size. The impatient investor selling WKHS shares will create a better entry point. If the stock falls again, the total return increases, assuming that it rebounds. Still, investors are justifiably nervous about Workhorse winning a contract of that size. The company expects only 300 to 400 vehicles produced by the end of the fourth quarter this year. Furthermore, WKHS posted revenue of just $92,000 in Q2. The cost of goods topped $1.5 million. This resulted in an 11 cent earnings per share loss in the period. Opportunity for WKHS Stock Workhorse’s 1,200-unit backlog forecast demonstrates the strong demand for its fleet. It has two orders with Ryder but expects all of its channel partners to help it increase its backlog quantity. The company has ample cash on hand, too. It has $105 million in cash after tapping its credit line. So, as the cost of capital falls, Workhorse is in a good position to operate without issuing warrants and options until 2022. Investors should recognize the production ramp from here through to Q4 and beyond. On the conference call, Chief Operating Officer Rob Willison said, “the ramp starts from here and goes up.” He went on to say in Q4, it expects to produce 100 units a month. Next year, producing 150 – 200 monthly is possible, if the market can absorb that volume. In 2021, Workhorse will have a higher capacity in place to mass-produce vehicles. Gross margins may turn positive, too. That will require research and development plus general and administrative costs falling. Your Takeaway Only four analysts have an opinion on Workhorse. The average price target is $23.33 (per Tipranks). If analysts are cautious about the stock, it will not attract as many institutional investors. It is also worth mentioning that insiders sold shares regularly in the last three months. The automated selling may not signal much but it does not give a bullish indicator, either. Keep Workhorse stock on the watch list. If the stock dips sharply, consider starting a position. Disclosure: On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Exercise Patience and Wait to Buy Workhorse Group Stock If Shares Dip appeared first on InvestorPlace.
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Shares of General Electric Co. surged to the highest price seen in four months before pulling back, as Wall Street has gotten a little more optimistic on the outlook ahead of the industrial conglomerate’s earnings report.
In February 1993, five years after taking over from his father at South Korea's Samsung Group, 51-year-old Lee Kun-hee was frustrated that he wasn't making his mark. After a tense nine-hour follow-up meeting, Lee kick-started a strategic shift at Samsung - to gain market share through quality, not quantity. Lee, who died aged 78 on Sunday after being hospitalised for a heart attack in 2014, was driven by a constant sense of crisis, which he instilled in his leadership teams to drive change and fight complacency.
When GoodRx (NASDAQ:GDRX) stock debuted in September, its price immediately leaped 60%, peaking at $57 in early October. Regular investors couldn’t have bought shares at any reasonable value, so I wrote GDRX stock off as “yet another high-priced 2020 IPO.” Source: II.studio / Shutterstock.com Shares, however, have since declined to a more reasonable $52. At this price, it’s time to take a serious look into this game-changing company. That’s because, in April, the federal agency responsible for Medicare changed its guidelines on telemedicine reimbursements. With insurers now required to cover remote doctor visits at parity, the floodgates for telehealth companies like GoodRx have finally opened. And with its high-growth strategy and proven executive team, GoodRx is in pole position to become the next Amazon of healthcare.InvestorPlace - Stock Market News, Stock Advice & Trading Tips GoodRx Stock: From Pharmacy to Telehealth As I’ve emphasized before, investments with 1,000% potential returns need three key things: A growing market. A proven product or management team. A catalyst that tells us, “why now?” The fourth qualification — price — is also essential, but depends more on market size. Miss one of them, and you end up with either 1) a well-run but slow-growing company or 2) a high-potential firm that goes nowhere. Fortunately for investors, GoodRx hits all three qualifications for a 1,000% returner. The company was founded in 2011 by former Facebook (NASDAQ:FB) engineers, and its flagship product, an online prescription price comparison tool, already has almost 5 million monthly users. The firm is highly profitable, and its telehealth marketplace opened at just the right moment in history. 7 Airline Stocks to Buy on Pelosi Stimulus Hopes So, for those who are tired of high-priced, money-losing IPOs, here’s why GoodRx stock looks different. Reason No. 1: CMS Gives GoodRx Stock A Real Catalyst With new technologies, people should always ask: “Why now?” That’s because innovations often need the right environment to grow. Video sharing sites like ShareYourWorld.com (founded in 1997) wouldn’t have worked until high-speed broadband came around in the mid-2000s. And in medicine, mail-order pharmacies and telehealth companies have been around for years. Pharmacy benefit management (PBM) company Catamaran had a large mail service pharmacy, which UnitedHealth (NYSE:UNH) eventually bought in 2015 for $12.8 billion. Teladoc (NYSE:TDOC), a telemedicine company, has been around since 2002. Yet, telehealth still makes up just 1.5% of the healthcare market. And that’s why catalysts are so crucial to high-growth companies like GoodRx. Covid-19 Creates a Catalyst In April, the Centers for Medicare & Medicaid Services (CMS) created a flurry of new reimbursement regulations to allow doctors and patients to stay home. Under Section 1135 waivers, healthcare providers can now provide virtually all non-physical services online. That includes everything from new patient visits to wheelchair management training. And where Medicare goes, the rest of insurance follows. As private insurers realign billing practices to mirror Medicare, investors should expect both supply and demand of telehealth medicine to skyrocket. And that’s where GoodRx comes in. Reason No. 2: GoodRx and a Growing Market Today, GoodRx earns money from its prescription drug price comparison website. Users can search for the cheapest drug providers, and GoodRx receives a commission from PBMs for the referral. It’s an extremely lucrative business (earning the company eye-popping 36% margins in 2019) and growing revenues at 50% per year. Independently, GoodRx might be worth $20 billion in that space. Then something even more interesting happened. In April 2019, the company acquired telehealth company HeyDoctor, and in March 2020, it launched the GoodRx Telehealth marketplace. These additions couldn’t have come at a better time. In 2018, Americans spent $335 billion on prescription drugs, according to the CMS. And a large portion is still covered by insurance, reducing the usefulness of GoodRx’s price comparison tool. On the other hand, physician services took in $564 billion, which makes it a far broader market for telehealth. And that doesn’t include possible telehealth applications, in-home healthcare ($102 billion annual spend), other personal care ($552 billion) or nursing care ($168 billion). If GoodRx can turn its highly efficient marketing funnel toward acquiring telehealth customers, the company could become worth multiples of its current valuation. Reason No. 3: Strong Product, Strong Management The numbers paint a flattering picture of the online health company. GoodRx has been profitable since 2016, an impressive feat for a fast-growing software company. It’s consistently kept R&D and administrative spending under control, using just 3.7% of revenues on overhead costs. And its share-based compensation of just $3.7 million in 2019 also indicates a focus on shareholder value. Recent IPO Snowflake (NYSE:SNOW), by comparison, awarded $78.3 million in share-based compensation in 2020, despite generating just 68% of GoodRx’s revenue and negative profits. And what about its actual product? App reviews are overwhelmingly positive, with users applauding the company over their prescription drug savings. GoodRx needs excellent customer experiences to keep its pipeline of referrals up. What’s GoodRx Stock Worth? Here’s where investors should rightly worry. The company’s monthly users dropped from 5 million in March to 4.2 million in April when the coronavirus pandemic took hold. Though users have steadily climbed back to 4.9 million, it’s a reminder that GoodRx must fight for repeat customers. (Mail-order pharmacies, on the other hand, generate endless income streams from chronic prescriptions). There are also other concerns: Single-payer healthcare reform could instantly sink the GoodRx pharmacy franchise — users would no longer have a reason to price-compare drugs. A stronger competitor could also derail the online healthcare firm’s growth. And that makes GoodRx challenging to value. A traditional two-stage DCF model that grows revenues to $9 billion by 2030 pegs the company at a $34 billion enterprise value, or $92 per share. That’s an 84% upside. However, raising the discount rate (a measure of risk) to 11% drops fair enterprise value to $20.2 billion, or $52 per share. A more aggressive approach might use a venture-capital (VC) method of market sizing. It’s less precise but gives better insight into untapped markets. Currently, analysts expect the global telehealth industry to grow 23.4% annually through 2026. Suppose we assume that U.S. telehealth grows faster at 55% (thanks to the CMS rule change). That suggests a $142 billion market by 2026, or 2.5% of total healthcare spending. If GoodRx receives a 12% “take rate” and obtains a 30% market share, it would earn $5.1 billion from telehealth revenues alone. Adding another $4 billion from pharmacy services and a 8x price-sales (PS) multiple puts value at $72.8 billion, or almost $200 per share. All this means that GoodRx still has a lot to prove. Even though it hits all three “high-growth” company points, we won’t know for years if it’s the next successful Amazon or the next failing Overstock (NASDAQ:OSTK). But until then, it could be worthwhile to make a small wager. Because in the world of high-growth investing, it just takes one winner to make your portfolio shine. On the date of publication, Tom Yeung did not have (either directly or indirectly) any positions in the securities mentioned in this article. Tom Yeung, CFA, is a registered investment advisor on a mission to bring simplicity to the world of investing. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company The post Why GoodRx Stock Is Now a Screaming ‘BUY’ appeared first on InvestorPlace.
The US Securities and Exchange Commission has paid a record $114m (£87m) to a whistleblower for information and assistance that enabled enforcement action by authorities. The SEC, which is tasked with regulating US financial markets and protecting investors, said on Thursday that the whistleblower’s actions were extraordinary and praised the high quality of the information provided both to it and another agency. The $114m award comprised $52m for assistance given to the SEC and a further $62m for related actions taken by another agency. The award is more than double the previous record payout of $50m that was paid in June. Jane Norberg, chief of the SEC’s Office of the Whistleblower, said: “The actions of the whistleblower awarded today were extraordinary. “After repeatedly reporting concerns internally, and despite personal and professional hardships, the whistleblower alerted the SEC and the other agency of the wrongdoing and provided substantial, ongoing assistance that proved critical to the success of the actions.” Neither the whistleblower’s identity nor the case in which they provided information was disclosed. The SEC has awarded about $676m to 108 individuals since 2012. The payments are made out of a fund established by Congress that is financed by fines levied by the SEC against companies and individuals that break securities laws. Whistleblowers can receive an award if they have voluntarily provided original, timely, and credible information that leads to a successful enforcement action. Where the fine imposed is more than $1m they can be awarded between 10pc and 30pc of the money collected from the rule breakers. The SEC’s enforcement actions this year included a $500m fine for Wells Fargo after the bank misled investors about the success of its largest business unit while it was opening fake accounts and selling unnecessary products that customers never used. Jay Clayton, chairman of the SEC, said the record payment was “a testament to the Commission’s commitment to award whistleblowers who provide the agency with high-quality information”. “Whistleblowers make important contributions to the enforcement of securities laws and we are committed to getting more money to whistleblowers as quickly and as efficiently as possible,” he added. British authorities have resisted following the US by financially rewarding individuals who bring corporate wrongdoing to light despite the personal and financial risks they face. The Financial Conduct Authority said previously that US agencies had not seen a significant increase in whistleblower reports after it began offering financial incentives.
President Trump has described his audit as ‘very routine,’ but legal experts say it is quite unusual.
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Dad was thrifty enough to retire in his 50s. Mom’s nest egg was mostly retirement accounts and index funds. Now they’re buying and selling hot stocks in pursuit of quick profits.